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XI. How to Handle the Financial Impact of Maternity Leave
By now, you’ve read about the bad news – your maternity leave may not be paid leave. The good news is that you probably have nine months to prepare for the financial impact of your maternity leave.
This may be one of the biggest reasons to begin looking into your maternity leave options early in your first trimester. The longer you have to consider your financial options and to save as necessary, the better.
After you have determined what income will be available to you during your leave, if any, you should review your monthly expenditures. Consider your expenses along with your partner’s income (if available) and your leave pay (if any) when determining how long you can afford to stay on maternity leave.
Don’t estimate these numbers – actually sit down with your check register, bank statements and/or Quicken reports. Do the math on paper so that you can see it in writing. You are more likely to come up with and stick to a reasonable financial plan if you do it this way.
You may have to adjust your finances for eight or nine months in order to best prepare for the financial impact of your parental leave. This may include saving a portion of each paycheck in the months leading up to delivery.
It could include paying certain debts down so that your monthly expenses are lower at delivery. You may need to do a combination of the two. Formulating and sticking to a plan early will alleviate a lot of stress during your leave.
If you are self-employed as a solo practitioner or proprietor, you’ve got some additional considerations. In addition to thinking about your income during your leave, you will need to consider how to continue your business in your absence. Your clients and customers still need services or goods even though you’ve just had a baby. Begin working on a plan for this immediately upon confirming your pregnancy.
In this situation, you will need to prepare a manager, employee or affiliate to cover for you in your absence. You may also need to advise your regular clientele of your impending leave, depending on your business.
The best case scenario as it relates to your finances during maternity leave can only be achieved if you prepare. Do as much research and negotiation as possible to obtain as much pay during your leave as you can. Then do some detailed financial planning and stick to your plan throughout your pregnancy. With both good organization and preparation, you should be able to lessen the
financial impact that your leave will have on your family.
Proceed to - Maternity Leave Transitions at Work
This may be one of the biggest reasons to begin looking into your maternity leave options early in your first trimester. The longer you have to consider your financial options and to save as necessary, the better.
After you have determined what income will be available to you during your leave, if any, you should review your monthly expenditures. Consider your expenses along with your partner’s income (if available) and your leave pay (if any) when determining how long you can afford to stay on maternity leave.
Don’t estimate these numbers – actually sit down with your check register, bank statements and/or Quicken reports. Do the math on paper so that you can see it in writing. You are more likely to come up with and stick to a reasonable financial plan if you do it this way.
You may have to adjust your finances for eight or nine months in order to best prepare for the financial impact of your parental leave. This may include saving a portion of each paycheck in the months leading up to delivery.
It could include paying certain debts down so that your monthly expenses are lower at delivery. You may need to do a combination of the two. Formulating and sticking to a plan early will alleviate a lot of stress during your leave.
If you are self-employed as a solo practitioner or proprietor, you’ve got some additional considerations. In addition to thinking about your income during your leave, you will need to consider how to continue your business in your absence. Your clients and customers still need services or goods even though you’ve just had a baby. Begin working on a plan for this immediately upon confirming your pregnancy.
In this situation, you will need to prepare a manager, employee or affiliate to cover for you in your absence. You may also need to advise your regular clientele of your impending leave, depending on your business.
The best case scenario as it relates to your finances during maternity leave can only be achieved if you prepare. Do as much research and negotiation as possible to obtain as much pay during your leave as you can. Then do some detailed financial planning and stick to your plan throughout your pregnancy. With both good organization and preparation, you should be able to lessen the
financial impact that your leave will have on your family.
Proceed to - Maternity Leave Transitions at Work
